Posts Tagged ‘Mortgage Interest’
Buying a home with parents-in-law as investors: - How to structure the purchase to protect all involved?
Saturday, December 26th, 2009My wife and I are buying a house. My parents in law want to invest in this house too, so are putting 0k into it (cash). We will get the balance via a mortgage and will live in the house paying all living expenses. Parents in law are doing this purely as an investment, meaning that when we sell in a few years they want to extract their profit relative to how much of the property they own.
We want to make sure we can take advantage of mortgage interest tax deductions, homestead exemption etc. They want to make sure they don’t have to pay tax on any profit they make.
How do we do this? Do they ‘gift’ us the money, then after we close do a Quitclaim deed? if we do that, when we sell the house can we split the proceeds any way we want?
Or do we do this as an ‘on-demand’ loan from them?
Or do we do this as a joint investment and close together?
It seems more complicated than it needs to be.
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How can IRS know if I actually paid or my mom paid the tax and mortgage interest before I was on Deed and Mort
Wednesday, October 28th, 2009Hi, this is a follow up question to my original.
Most have said I cannot deduct the mortgage interest and property tax that was paid on this property that I was put on deed toward the end of the year.
How can IRS actually know that it wasn’t me paying this?
If I provide funds to my mom earlier this year to make her mortgage payments and tax payments, isn’t that considered me paying for it?
At the end of the year, the mortgage companies will have both my name and my moms on the 1099 as well as the property tax reciept with both my name and hers since by the time they generate this i will be on the deed too right?
